H.C. Wainwright Reiterates Buy On Spectrum Pharma Following 3Q14 Results


In a research note issued today, H.C. Wainwright analyst Reni Benjamin reiterated a Buy rating on Spectrum Pharma (NASDAQ:SPPI) with a $15 price target, following the company’s release of its third-quarter results.

Benjamin wrote, “A major highlight of the third quarter was Spectrum’s decision to advance SPI-2012, a long-acting granulocyte colony-stimulating factor (GCSF), into Phase 3 clinical trials after achieving positive Phase 2 results. Spectrum currently boasts a portfolio of five marketed oncology products, including: Fusilev, Zevalin, Folotyn, Marqibo, and most recently, Beleodaq. With approximately $148 MM in cash and a diverse pipeline of assets in clinical development, we believe Spectrum represents an undervalued player with significant upside for the long-term investor.”

The analyst continued, “We view the decision to continue SPI-2012 development as great news for the company and investors alike as management targets chipping away at Amgen’s (AMGN; not rated) lucrative $3.5 billion (US sales in 2013) franchise. With relatively high neutropenia US prevalence rates and pegfilgrastim pricing exceeding $11,000 per patient, the potential US market for SPI-2012 exceeds $1 billion. Spectrum hopes to begin Phase 3 registration trials in 2015 after meeting with the FDA to discuss study designs before the end of 2014.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Reni Benjamin has a total average return of -2.6% and a 35.5% success rate. Benjamin has a -7.2% average return when recommending SPPI, and is ranked #2964 out of 3382 analysts.

 

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